All Forum Posts by: Brian Alfaro

Welcome! Looking forward to connecting. Reach out if you have any questions or needs!

Terms were 3 points and 12%. Hoping to find/get better terms next time or find private money partners to build a relationship with. 

I look for properties every day, so months. I didn’t want my first one to leave a bad taste in my mouth so I was particular about what I was looking for. Rehab took about 3.5-4 weeks. I evaluated hundreds of properties before I bought this one. Lost two deals before this one went through for various reasons.

My refi is $99k + Closing costs since I had room to roll them in. Zero cash out of pocket to refi. My mortgage monthly PITI is right over $700.

Their projected rehab was $42k. Actual $52k  

Projected ARV was $125-135k. My appraisal came in at $145k.

 Stanley - it is in 77033. South Houston area. 

Thanks, guys! One at a time... with the market the way it is down here. Just being patient. Gonna try to tackle a small multi-family next and go from there. 

Craig! 

I would highly recommend you focus on either:

A) Networking face to face at local REI meetings. There are so many here in Houston. Try to attend 2-3 a month if you can and rub shoulders with people actually taking action. Find where you can bring value to them.

B) Trying to network with investors here on BP that are local by scheduling a call or in person meeting (lunch or coffee). Deals come from building relationships with sellers and others in the industry. It’s that old saying that your net worth is your network. Never stop networking. There are people out there willing to help you and that want you to be successful. You find them usually in person after building trust. 

Amen! You can’t just do a post on any platform saying “send me your deals!!!” and expect people to flood you with anything of actual value. I see it all the time on FB and just laugh. If only it was that easy... 

Mark! Welcome!

My advice is the same advice I give to all people getting started. NETWORK

Get out there and attend as many meetups as you can. There are so many real estate meetups in Houston that you could probably attend one daily if you wanted to. Try to rub shoulders with people TAKING ACTION. Meet lenders, flippers, landlords, private money folks, contractors, insurance companies, anyone and everyone you can who can potentially help on your journey. Real Estate is all about who you know and is a relationship business. Deals arent' found by just going on a website and searching for them - you have to know people. 

I see so many people post about trying to find a Duplex/TriPlex/FourPlex/Etc as their first investment due to the number of times it's mentioned on the BP Podcast. It's definitely a great potential first investment, but I can tell you they are really hard to find, especially at that price point and the area you mentioned, here in Houston. Someone pitched me a four-plex earlier today that needed $100k or more in rehab (or might even be a tear down) that was near the Med-Center for $229k. Someone will probably buy it because the market is crazy right now. 

Keep your eyes peeled and network! Hopefully I'll get to meet you at one of the events here in town soon. Feel free to reach out!

I'll PM you the details so I dont get flagged for promoting. 

Investment Info:

Single-family residence buy & hold investment in Houston.

Purchase price: $57,000
Cash invested: $17,000

Bought a 3/2, 1950s home from a wholesaler. I used a Hard Money Loan to purchase + rehab. First BRRRR!

What made you interested in investing in this type of deal?

First Buy & Hold Rental! This home was in a zip code that was appreciating and getting hot for flippers. It's a C/D class neighborhood with long term potential due to it's proximity to major city attractions and Downtown Houston.

How did you find this deal and how did you negotiate it?

Wholesaler. They wanted $65k, but we settled at $57k. I knew it needed anywhere from $40-45k in rehab to make it rent ready and my calculations were all based on a $130k ARV to be conservative.

How did you finance this deal?

Hard Money loan for $99k- I only brought $9,800k to the closing table after paying points, closing costs, etc. 75% of the ARV was financed.

How did you add value to the deal?

We turned the formal dining room into a 4th bedroom as it already had a window and coat closet. We also decided towards the end of the rehab to install a new painted fence around the property for safety & security and for curb appeal. This was not in the original SOW. In addition, the City of Houston repaved by garage driveway without notice which was great.

What was the outcome?

Rehab went a little over budget at $52k due to A/C challenges and fence addition. The post-rehab appraisal on the refinance came back at $145k, $13k more than the pre-rehab Hard Money appraisal. I was able to refinance without bringing any money to the closing table and have the opportunity to pull cash out if I wanted. The property will rent for $1,400 per month. Very little cash left in the deal!

Lessons learned? Challenges?

So much was learned! First, securing your A/C is important in these neighborhoods. The property was purchased with an A/C unit, but it was stolen on closing day. In addition, learning to manage the draw schedule and your cash reserves is vital to staying alive. You need to have good communication with your contractor and a clear plan up front on when he/she will be paid. I also learned to be more detail oriented when inspecting to get a property rent-ready.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Noble Mortgage - Hard Money Lender in Houston. They were great! Awesome customer service.